CITY OF SOUTH DAYTONA FISCAL YEAR PRELIMINARY OPERATING AND CAPITAL BUDGET HIGHLIGHTS

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1 CITY OF SOUTH DAYTONA FISCAL YEAR PRELIMINARY OPERATING AND CAPITAL BUDGET HIGHLIGHTS 1

2 Citywide Budget Overview 2

3 CITYWIDE TOTAL BUDGET FY FY $ % AMENDED PRELIMINARY Increase Increase BUDGET BUDGET (Decrease) (Decrease) General Fund $ 15,278,560 $ 12,857,690 $ (2,420,870) % Police Confiscated Fund 10,000 7,585 (2,415) % Parks Improvement Fund (315) % Redevelopment Trust Fund 1,210,388 1,330, , % Transportation Fund 4,009,673 2,063,417 (1,946,256) % Capital Project Fund 100,000 - (100,000) % Utility Service Fund 8,836,149 8,318,400 (517,749) -5.86% Interservice Fund 165, ,296 (540) -0.33% Community Trust Fund 22,500 20,000 (2,500) % Total $ 29,633,421 $ 24,762,725 $ (4,870,696) % City of South Daytona Preliminary Citywide - All Funds Fiscal Year Parks Improvement Fund $- 0% Capital Project Fund $- 0% Transportation Fund $2,063,417 8% Utility Service Fund $8,318,400 34% Redevelopment Trust Fund $1,330,337 5% General Fund $12,857,690 52% Interservice Fund $165,296 1% Community Trust Fund $20,000 0% Police Confiscated Fund $7,585 0% 3

4 CITYWIDE TOTAL REVENUE SOURCES FY FY $ % AMENDED PRELIMINARY Increase Increase BUDGET BUDGET (Decrease) (Decrease) Taxes $ 6,917,572 $ 7,351,218 $ 433, % Licenses / Permits 350, ,205 27, % Intergovernmental 5,210,045 3,090,637 (2,119,408) % Charges for Services 9,475,263 9,491,705 16, % Fines 35,244 32,400 (2,844) -8.07% Miscellaneous 284, ,437 (169,304) % Other Sources 7,359,832 4,303,123 (3,056,709) % Total $ 29,633,421 $ 24,762,725 $ (4,870,696) % City of South Daytona Preliminary Citywide Revenues - All Funds Fiscal Year Miscellaneous $115,437 0% Other Sources $4,303,123 17% Taxes $7,351,218 30% Fines $32,400 0% Charges for Services $9,491,705 38% Intergovernmental $3,090,637 13% Licenses/Permits $378,205 2% 4

5 CITYWIDE TOTAL EXPENDITURES BY FUNCTION FY FY $ % AMENDED PRELIMINARY Increase Increase BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 226,283 $ 226,283 - Personal Services $ 7,963,045 $ 8,035,703 $ 72, % Operating Expenses 9,650,915 8,266,237 (1,384,678) % Capital Outlay 2,649,387 1,588,410 (1,060,977) % Debt Service 5,382,763 2,531,369 (2,851,394) % Aid to Private Organizations 10,000 51,955 41, % Non-Operating 3,549,097 3,178,415 (370,682) % Transfer to Reserves 428, , , % Total $ 29,633,421 $ 24,762,725 $ (4,870,696) % Contingency $226,283 1% Non-Operating $3,178,415 13% City of South Daytona Preliminary Citywide Expenditures - All Funds Fiscal Year Personal Services $8,035,703 33% Transfer to Reserves $884,353 4% Debt Service $2,531,369 10% Capital Outlay $1,588,410 6% Operating Expenses $8,266,237 33% Aid to Private Organizations $51,955 0% 5

6 FY major funds: General Fund decreased $2,420,870 or 15.84% primarily attributable to a debt service expense of $1,500,000 and operating expenses attributable to Hurricane Matthew of $1,717,700. This decrease includes an increase in ad valorem taxes dedicated to debt service payments of $166,538. Redevelopment Trust Fund increased $119,949 or 9.91% primarily attributable to costs related to streetscape and streetlight maintenance along US1 of $83,960 as well as an increase in ad valorem taxes dedicated to debt service payments of $37,124. Transportation Fund decreased $1,946,256 or 48.54% attributable to the scheduled debt service on a grant anticipation loan for prior year capital projects including the Lantern Park bridge replacement, Venture Drive traffic signal replacement, and US1 median landscape improvements $1,555,000. Utility Service Fund decreased $517,749 or 5.86% attributable to the completion of prior year grant funded capital projects including Lantern Park stormwater retention pond development, Sherwood Forest stormwater pump replacement, Cutter s Way sewer line extension and Jones St. drainage improvements as well as the purchase of a sewer vacuum truck funded with a bank loan.. 6

7 Citywide Expenditure Adjustments Florida Retirement System employer contributions increased by 2.3% or $19,840.. Health insurance premiums increased by 4.2% or $36,438. Employees budgeted to receive a 2% wage adjustment plus variable merit of 1.5% for an estimated combined average increase of 3% at an estimated cost of $184,320 including benefits. 7

8 Future concerns Homestead exemption legislation November 2018 ballot question potentially effects FY Currently, homeowners receive the original $25,000 exemption plus an exemption for the value between $50,000 and $75,000. Approval of the amendment would mean the first $25,000 and the value between $50,000 and $100,000 would be exempt (does not apply to school property tax levies). The bill provides that the rolled back rate used by local governments in FY must be calculated as if the tax base had not been reduced by the increased homestead exemption. Per Volusia County Property Appraiser estimated revenue loss of $132,000 in today s dollars. Scheduled debt service increase/balloon payment In FY 2015, the City refinanced three existing notes in order to lower the interest rates on those loans. The original debt included balloon payments on two of those notes. The refinanced note continued those balloon payments as well as incorporated scheduled debt service increases. In FY there is a scheduled increase of $260,000, equivalent to a year s worth of new revenue. Balloon payment of almost $1.1M is scheduled in FY to pay off the loan. This loan is allocated to the General Fund and the CRA and both would participate in paying down the loan. 8

9 Note 117 Amortization Schedule FY Year Due Date Principal Balance 4,109, Beginning balance /1/ , ,010, /1/ , ,912, /1/ , ,813, /1/ , ,714, /1/ , ,613, /1/ , ,512, /1/ , ,277, , scheduled increase 7/1/ , ,042, /1/ , ,802, /1/ , ,562, /1/ , ,317, /1/ , ,071, /1/ , ,821, /1/ , ,570, /1/ , ,314, /30/ , ,058, /30/2023 1,058, balloon total 4,109, Refinancing of projects originally debt financed US1 Corridor Utility burial Oak Lea Bridge City Hall Community Center James Street 9

10 Future concerns Personnel needs FISCAL YEAR Staffing remains below FY levels while employees continue to maintain levels of services and aging infrastructure. Operating reserve Reserves are budgeted to be 13.30% of operating expenditures by end of FY 2018 meeting minimum policy requirements but falling short of 10%-20% identified in City policy and 15%-20% recommended by GFOA. Hurricane reserve No hurricane reserve exists currently forcing the City to obtain a loan to cover Hurricane Matthew expenses of approximately $1.7 million pending receipt of grant funding. Funding a hurricane reserve is a long-term goal of the City to occur after meeting the operating reserve goal. Capital needs Capital needs continue to grow with needs repeatedly deferred. Limitations on operating expenditures Operating expenditures, including maintenance, artificially constrained. Not keeping up with actual costs or even inflation. 10

11 Revenue options Dedicated millage of 0.4 mills to avoid the impact of the scheduled debt service increase and balloon payment. Approximately $203,662 annually. Year 1 and 2 funds put into reserve until prepayment penalty expires. Year 3 and beyond funds used to cover scheduled increase and paydown debt. As other debt is paid off, staff recommends keeping debt service constant and applying those payments to this loan as well. If the additional millage were adopted and total debt service kept constant, funds would be available to pay down this loan by its scheduled maturity (6/30/23) without the need to refinance and extend terms. Without the dedicated millage, this loan would likely require refinancing to obtain extended terms due to the balloon payment. This loan is also the only outstanding loan the City has with no prepayment penalty (beginning 10/1/19). Beginning in FY , staff recommends continuing this millage to establish and build a hurricane reserve until an appropriate reserve of $3M is built by FY Two years provides $1.5M and 4 years provides $3M in hurricane reserve funding. Complete fee review to ensure appropriate fees in comparison with peer group projected revenue impact unknown. Parks & Recreation Building Permits Community Development/Impact Fees Water and Sewer Rate Study 11

12 Revenue options Increased emphasis on collections and liens Dedicated staff to develop and implement collection procedures First year revenue projection cost of program during setup. Fire assessment fee Strict timelines and requirements Could be implemented FY Revenue projection varies depending on extent of costs included in fee. Lake Helen implemented $129/residential unit. Total charges annually approximately $220,000. Availability fee water & sewer Temporary seasonal accounts 50 estimated accounts. Vacant/developed properties 100 estimated accounts. Revenue projection at minimum charge approximately $89,000 annually. Garbage contract extension Fee adjustment to implement minimum charge per resident for multi-family on par with existing residential rates Revenue projection unknown to be determined upon approval of final contract language. 12

13 Dedicated Revenues and Reserve Balances Estimated 9/30/17 Balance Expenditures Balance Public Safety Impact Fees 198,970 (198,970) - Transportation Impact Fees 10,310 (10,310) - Tree Replacement Reserve 160,197 (80,197) 80,000 Total 369,477 (289,477) 80,000 Water Impact Fees 74,873 (62,560) 12,313 Sewer Impact Fees 16,406-16,406 General Fund: 9/30/16 Balance $ 272,069 Net Increase to General Fund Operating Reserves - Prior Years Expenditures 289,477 Addition Due to Debt Financing Received in FY ,000 Estimated 9/30/17 Balance 962,546 Budgeted Addition FY ,000 Estimated 9/30/18 Balance $ 1,362,546 Budgeted Operating Expenditures FY 2018 $ 10,247,639 Reserves as a % of FY 2018 Operating Expenditures 13.30% 13

14 CITY-WIDE FULL TIME EQUIVALENT POSITIONS Department Approved Positions Positions Budgeted Positions Vacant Department Executive Finance * Staff Assistant III Community Development Assistant Community Development Director, Deputy Chief Building Official, Staff Assistant III Human Resources Human Resources Specialist Other General Government Custodian Police Fire ** Office Manager Public Works - Administration Assistant Public Works Director Parks and Recreation (6) Park Maintenance Workers Community Center Community Redevelopment Transportation (6) Street Maintenance Workers Water and Sewer Operations (5) Utility Maintenance Workers Utility Billing Utility Billing Clerk Internal Service Fund Mechanic Totals - FY Totals Totals - FY ** Transportation 0 2 (2) 2 Vacant Street Maintenance Workers hired in FY 2017 Police 0 1 (1) 1 Part-time Officer reclassified to Full time in FY 2017 Totals - FY Totals * In FY 2017, budget amended to fund Accountant rather than UB Clerk previously funded ** Does not include 4 positions funded under Safer Grant through

15 Number of Budgeted FTEs FISCAL YEAR City of South Daytona Full Time Equivalent Budgeted Positions Population 13,310 Fiscal Year Ended September Population 12,635 15

16 Dollar Amount FISCAL YEAR City of South Daytona Personal Services - All Funds 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Population 13,310 Fiscal Year Ended September Population 12,635 16

17 Millage Rate and Tax Roll Information 17

18 COUNTY-WIDE PROPERTY VALUE INCREASES As of January 1, JUST VALUE % CHANGE 2017 TAXABLE VALUE % CHANGE Rank Taxing Authority 2017 JUST VALUE $ 2017 TAXABLE VALUE $ EXEMPTIONS 1 Edgewater 1,533,356, % 838,044, % 370,858,936 2 Daytona Beach 7,101,525, % 4,356,500, % 2,080,412,955 3 DeLand 2,674,693, % 1,602,938, % 799,107,277 4 Deltona 4,448,705, % 2,114,977, % 1,276,427,716 5 New Smyrna Beach 5,037,129, % 3,436,884, % 808,266,824 6 Lake Helen 167,528, % 86,679, % 47,141,412 7 Ormond Beach 4,757,104, % 3,247,814, % 855,099,121 8 South Daytona 847,722, % 535,951, % 186,519,596 9 Oak Hill 189,603, % 102,475, % 61,709, Volusia County 49,898,011, % 31,172,579, % 11,032,700, Port Orange 4,741,896, % 2,990,702, % 1,051,841, Orange City 940,558, % 631,380, % 231,419, Pierson 113,093, % 48,710, % 43,100, Holly Hill 812,069, % 575,808, % 158,787, Daytona Beach Shores 1,797,840, % 1,529,007, % 127,592, Ponce Inlet 1,084,851, % 819,927, % 105,644, DeBary 2,312,506, % 1,662,335, % 350,886,569 18

19 Preliminary taxable valuation has increased $38,400,246 or 7.72% to $535,951,546 Includes net new taxable value of $1,287,514 or 0.26%. Excluding new taxable values, the taxable value increased $37,112,732 or 7.46%. The proposed millage rate is 7.8 mills which is an 11.97% increase over the rolled-back rate of The proposed millage rate generates an additional $424,635 over the rolled-back rate. Taxable value increased 7.72% and is the eighth highest in the County out of 17 taxing authorities. Edgewater had the highest increase in the County at 11.74%; Debary had the lowest at 3.01% Just Value increased 9.70% and is the fifth highest increase in the County out of 17 taxing authorities. Residential taxable values increased 8.10% from previous year; Residential taxable values still down 41.88% since peak year of Total taxable value is $218,846,730 or 28.99% less than 2008, the peak taxable value year of $754,798,276. Majority vote required to adopt. Tax increase advertisement would be required. 19

20 Ad Valorem Tax Levy Calculation FY FY Adopted/Proposed Millage Rate: Taxable Value $ 497,551,300 $ 535,951,546 Tax Levy (100%): $ 3,681,880 $ 4,180,422 General Fund $ 3,046,171 $ 3,418,402 Redevelopment Trust Fund $ 635,709 $ 762,020 Ad Valorem Tax Increase From Prior Year (100%) Increased Revenue $ 216,267 $ 498,542 General Fund $ 139,829 $ 340,446 Redevelopment Trust Fund $ 76,438 $ 158,096 Note: Only 95% of Ad Valorem tax revenue is budgeted. 20

21 Basic Millage Rate Options Millage Rates Tax Levy - 100% Increase Over Rolled-back Rate Total Ad Valorem Revenue General Fund Ad Valorem Revenue CRA Ad Valorem Revenue Total Total Incremental Incremental Increase Levy Increase - 100% Revenue - 95% Rolled-Back Rate ,733,438 3,052, ,542 51,558 48,980 Increase/(Decrease) over PY tax levy 51,558 (25,060) 76,618 Vote Required Majority vote/ no tax increase advertisement required Current Rate % 3,966,041 3,243, , , ,973 Increase/(Decrease) over PY tax levy 284, , ,018 Vote Required Majority vote/tax increase advertisement required Alternative Rate (.2 mills Debt Service) % 4,073,232 3,330, , , ,804 Increase/(Decrease) over PY tax levy 391, , ,557 Vote Required Majority vote/tax increase advertisement required Proposed Rate (.4 mills Debt Service) % 4,180,422 3,418, , , ,635 Increase/(Decrease) over PY tax levy 498, , ,096 Vote Required Majority vote/tax increase advertisement required Note: By adopting the Rolled-Back rate, General Fund ad valorem revenue would actually decrease because the CRA percentage of total values is slightly higher than in the previous year. 21

22 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 City of South Daytona Taxable Values January 1 Tax Year $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 City of South Daytona Ad Valorem Taxes Levied January 1 Tax Year 22

23 Mills FISCAL YEAR City of South Daytona Adopted/Proposed Millage Rate vs. Rolled-Back Rate Comparison Fiscal Year Rolled-Back Rate Adopted Rate 23

24 COUNTY-WIDE NEW CONSTRUCTION AND ANNEXATION VALUES 1 VOLUSIA COUNTY $ 447,721, % 2 DAYTONA BEACH 93,309, % 3 NEW SMYRNA BEACH 69,858, % 4 DELAND 62,860, % 5 ORMOND BEACH 45,830, % 6 PORT ORANGE 29,792, % 9 EDGEWATER 26,631, % 7 DEBARY 16,485, % 8 DELTONA 13,888, % 10 PONCE INLET 6,880, % 11 ORANGE CITY 2,993, % 12 HOLLY HILL 2,703, % 13 OAK HILL 2,098, % 14 SOUTH DAYTONA 1,287, % 15 LAKE HELEN 1,238, % 16 DAYTONA BEACH SHORES 746, % 17 PIERSON 288, % $ 824,615, % 24

25 COUNTY-WIDE POPULATION RANK TAXING AUTHORITY POPULATION % OF TOTAL POPULATION 1 Volusia County 114, % 2 Deltona 88, % 3 Daytona Beach 64, % 4 Port Orange 59, % 5 Ormond Beach 40, % 6 DeLand 31, % 7 New Smyrna Beach 25, % 8 Edgewater 21, % 9 DeBary 20, % 10 South Daytona 12, % 11 Holly Hill 11, % 12 Orange City 11, % 13 Daytona Beach Shores 4, % 14 Ponce Inlet 3, % 15 Lake Helen 2, % 16 Oak Hill 1, % 17 Pierson 1, % TOTAL 515, % 25

26 SOUTH DAYTONA HISTORICAL VALUES TAX FISCAL TAXABLE MILLAGE TAX YEAR YEAR VALUE RATE LEVY $ 535,951, $ 4,180, ,551, ,681, ,326, ,465, ,812, ,276, ,610, ,171, ,570, ,528, ,961, ,660, ,842, ,884, ,759, ,413, ,030, ,222, ,798, ,207, ,834, ,378, ,516, ,086, ,859, ,649, ,417, ,001, ,518, ,871, ,417, ,760, $ 380,724, $ 1,750,196 26

27 SOUTH DAYTONA TAXABLE VALUE CALCULATION JAN 1, 2016 VALUATION JAN 1, 2017 VALUATION DIFFERENCE $ DIFFERENCE % % OF ASSESSED VALUE Just Value $772,780,094 $ 847,722,338 $ 74,942, % Assessed Value 679,961, ,471,142 42,509, % Exemptions $25,000 Homestead Exemption 73,985,949 74,092, , % 10.26% $25,000 Homestead Exemption - Amend. #1 Additional 55,168,836 57,301,452 2,132, % 7.93% Age 65 and Older Exemption 7,693,625 7,865, , % 1.09% Tangible Personal Property - 1st $25,000 Exemption - Amend. #1 5,531,192 5,374,726 (156,466) -2.83% 0.74% Governmental Exemption 18,263,104 19,358,119 1,095, % 2.68% Institutional Exemption (Charitable, Religious, Scientific, Literary, Educational) 14,528,750 15,424, , % 2.14% Widows / Widowers Exemption 184, ,000 (10,000) -5.43% 0.02% Disability / Blind Exemption 6,633,616 6,479,371 (154,245) -2.33% 0.90% Lands Available for Taxes 8,625 - (8,625) % 0.00% Disabled Veterans' Homestead Discount 400, ,398 36, % 0.06% Deployed Service Member's Homestead Exemption 12,169 13, % 0.00% Taxable Value $497,551,300 $ 535,951,546 $ 38,400, % 25.82% 27

28 SOUTH DAYTONA AVERAGE TAX LEVY CLASSIFICATION PARCELS HOME- STEADS JUST VALUE ASSESSED VALUE EXEMPT TAXABLE FY AD VALOREM TAX LEVY AVERAGE CITY TAX LEVY Agricultural - - $ - $ - $ - $ - $ - $ - Commercial ,616, ,637,894 2,536, ,101, ,791 3, Governmental 75-20,038,392 18,537,998 18,537, Industrial ,560,795 27,534,734-27,534, ,771 1, Institutional 19-17,485,578 17,385,437 12,071,938 5,313,499 41,445 2, Miscellaneous , ,835 1, ,834 2, Residential 4,878 2, ,676, ,712, ,672, ,040,035 2,574, Vacant ,616,738 18,964, ,300 18,614, , Tangible Personal Property 1,531-38,029,701 38,029,701 6,313,897 31,715, , Centrally Assessed 83-2,311,127 2,311,127 35,415 2,275,712 17, Totals 7,292 2,978 $847,722,338 $ 722,471,142 $186,519,596 $535,951,546 $ 4,180,422 $

29 RESIDENTIAL PARCELS TAX EFFECT SOUTH DAYTONA RESIDENTIAL PARCELS HISTORICAL TAX EFFECT TAXABLE PARCEL AVERAGE MILLAGE AVERAGE INCR. / (DECR.) FYE 9/30 VALUE COUNT PARCEL TAX VALUE RATE PARCEL TAX LEVY FROM PRIOR YEAR 2018 $ 330,040,035 4,878 $ 67, $ $ ,040,035 4,878 67, ,304,978 4,877 62, ,723,371 4,908 58, ,103,500 4,911 54, ,852,827 4,905 52, ,094,017 4,905 53, (18.07) ,722,922 4,898 56, (28.17) ,292,057 4,901 61, (41.96) ,031,747 4,913 69, ,330,974 5,096 74, (33.42) ,100,279 4,892 94, (65.41) ,262,664 4,833 96, ,421,654 4,514 81, $ 311,066,758 4,506 $ 69, $ $ RESIDENTIAL PARCELS COUNTY-WIDE TAX EFFECT COMPARISON TAXING PARCEL TAXABLE AVERAGE FY PROPOSED AVERAGE RANK AUTHORITY COUNT VALUE VALUE OPERATING MILLAGE TAX LEVY 1 Pierson 387 $ 15,170,568 $ 39, $ DeBary 8, ,728,166 93, Deltona 33,665 1,776,849,201 52, Edgewater 9, ,773,869 63, Oak Hill ,837,117 74, Port Orange 21,317 2,021,601,625 94, Hollly Hill 4, ,574,076 62, Orange City 2, ,369,977 56, Lake Helen ,359,185 58, South Daytona 4, ,040,035 67, Daytona Beach 22,904 1,884,497,958 82, DeLand 9, ,242,886 86, Ormond Beach 16,377 2,261,787, , New Smyrna Beach 15,816 2,835,848, , Volusia County 208,028 20,993,229, , Daytona Beach Shores 6,172 1,313,796, , , Ponce Inlet 3,125 $ 758,402,413 $ 242, $ 1,

30 ALL PARCELS TAX EFFECT SOUTH DAYTONA ALL PARCELS HISTORICAL TAX EFFECT TAXABLE PARCEL AVERAGE MILLAGE AVERAGE INCR. / (DECR.) FYE 9/30 VALUE COUNT PARCEL TAX VALUE RATE PARCEL TAX LEVY FROM PRIOR YEAR 2018 $ 535,951,546 7,292 $ 73, $ $ ,951,546 7,292 73, ,551,300 7,261 68, ,326,087 7,240 64, ,812,655 7,235 61, ,610,274 7,208 59, ,570,070 7,290 58, (16.68) ,961,295 7,319 61, (29.30) ,842,651 7,342 66, (71.46) ,759,487 7,352 80, ,030,666 7,378 88, (8.60) ,798,276 7, , (11.69) ,834,686 7,391 95, ,516,369 7,009 79, $ 468,859,463 7,007 $ 66, $ $ ALL PARCLES COUNTY-WIDE TAX EFFECT COMPARISON TAXING PARCEL TAXABLE AVERAGE FY PROPOSED AVERAGE RANK AUTHORITY COUNT VALUE VALUE OPERATING MILLAGE TAX LEVY 1 Pierson 1,564 $ 48,710,600 $ 31, $ Oak Hill 1, ,475,841 52, Lake Helen 2,027 86,679,513 42, Deltona 41,219 2,114,977,451 51, Edgewater 13, ,044,501 63, Port Orange 30,499 2,990,702,263 98, DeBary 11,936 1,662,335, , Hollly Hill 7, ,808,282 75, New Smyrna Beach 23,033 3,436,884, , Ormond Beach 24,666 3,247,814, , South Daytona 7, ,951,546 73, Volusia County 334,476 31,172,579,149 93, DeLand 16,032 1,602,938,528 99, Orange City 6, ,380,462 97, Daytona Beach 36,158 4,356,500, , Daytona Beach Shores 7,776 1,529,007, , , Ponce Inlet 3,936 $ 819,927,758 $ 208, $ 1,

31 City of South Daytona Average Residential Parcel Property Tax Bill $600 $500 $400 $300 $200 $100 $ Fiscal Year Ended September 30 $600 $500 $400 $300 $200 $100 $0 City of South Daytona Citywide Average Property Tax Bill - All Parcel Types Fiscal Year Ended September 30 31

32 COUNTY-WIDE PROPOSED COMPOSITE MILLAGE RATES VOLUSIA COUNTY TAXING AUTHORITY COMPOSITE MILLAGE RATES - FY PROPOSED RESIDENTIAL RANK TAXING AUTHORITY PARCEL COUNT VOTED DEBT FIRE CONTROL MSD TOTAL 1 DeBary New Smyrna Beach Ormond Beach Port Orange Ponce Inlet Holly Hill Edgewater Daytona Beach DeLand Daytona Beach Shores South Daytona Lake Helen Orange City Deltona Oak Hill Pierson Volusia County

33 Review of Major Funds 33

34 General Fund Budget Highlights 34

35 GENERAL FUND TOTAL REVENUE SOURCES FY FY $ % AMENDED PRELIMINARY Increase Increase GENERAL FUND BUDGET BUDGET (Decrease) (Decrease) Taxes $ 5,368,147 $ 5,677,881 $ 309, % Licenses/Permits 350, ,205 27, % Intergovernmental 3,287,653 2,055,569 (1,232,084) % Charges for Services 2,150,290 2,163,215 12, % Fines 35,244 32,400 (2,844) -8.07% Miscellaneous 241,830 95,437 (146,393) % Other Sources 3,844,672 2,454,983 (1,389,689) % Total $ 15,278,560 $ 12,857,690 $ (2,420,870) % Miscellaneous $95,437 1% Fines $32,400 0% City of South Daytona Preliminary Revenues - General Fund Fiscal Year Charges for Services $2,163,215 17% Include graph Other Sources $2,454,983 19% Taxes $5,677,881 44% Intergovernmental $2,055,569 16% Licenses/Permits $378,205 3% 35

36 $800,000 City of South Daytona State Revenues $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Fiscal Year Ended September 30 Communications Service Tax Half-cent Sales Tax Municipal Revenue Sharing 36

37 GENERAL FUND STATE REVENUES Fiscal Year Municipal Revenue Sharing Half-Cent Sales Tax Communications Services Tax 2018 $ 463,000 $ 720,000 $ 372, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,486 Total $ 6,597,872 $ 10,403,054 $ 8,517,592 37

38 GENERAL FUND TOTAL EXPENDITURES BY FUNCTION FY FY $ % AMENDED PRELIMINARY Increase Increase GENERAL FUND BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 190,348 $ 190,348 - Personal Services 7,067,414 7,002,737 $ (64,677) -0.92% Operating Expenses 4,893,426 3,244,902 (1,648,524) % Capital Outlay 38,224 40,000 1, % Debt Service 2,603,195 1,170,312 (1,432,883) % Aid to Private Organizations - 41,955 41,955 N/A Non-Operating 676, ,899 (75,402) % Transfer to Reserves - 566, ,537 N/A Total $ 15,278,560 $ 12,857,690 $ (2,420,870) % Contingency $190,348 2% Debt Service $1,170,312 9% Capital Outlay $40,000 0% Aid to Private Organizations $41,955 0% City of South Daytona Preliminary Expenditures General Fund Fiscal Year Graph expenditures Operating Expenses $3,244,902 25% Personal Services $7,002,737 55% Transfer to Reserves $566,537 4% Non-Operating $600,899 5% 38

39 GENERAL FUND TOTAL EXPENDITURES BY DEPARTMENT FY FY $ % AMENDED PRELIMINARY Increase Increase ORG DEPARTMENT BUDGET BUDGET (Decrease) (Decrease) CONTINGENCY $ - $ 190,348 $ 190,348 N/A LEGISLATIVE 209, ,337-1, % EXECUTIVE 672, ,362-3, % FINANCE 935, , , % LEGAL 182, ,944-28, % COMMUNITY DEVELOPMENT 837, , , % HUMAN RESOURCES 0 157, ,259 N/A DEBT SERVICE 2,521,436 1,102,132-1,419, % GOVERNMENT 71, ,018 28, % POLICE 2,998,645 2,977,506-21, % FIRE 1,339,326 1,345,953 6, % SANITATION 1,387,497 1,387, % PUBLIC WORKS 1,916, ,043-1,537, % PARKS/RECREATION 1,182,685 1,105,842-76, % COMMUNITY CENTER 65,467 50,038-15, % SPECIAL EVENTS 54,700 61,024 6, % SUMMER/SPRING DAY CAMP 50,799 54,482 3, % RECREATION PROGRAMS 175, ,358 2, % GENERAL TRANSFERS OUT 676,301 1,167, , % FUND TOTAL $ 15,278,560 $ 12,857,690 $ (2,420,870) % 39

40 What's included in the budget? Transfer to reserves to restore reserve balances to 10% $400,000 Transfer to reserves for future debt service $166,537 Funding for Fire/EMS fee and property tax consulting $16,000 Safer Grant Match net of anticipated overtime savings $10,948 Funding for First Step Shelter $30,500 Funding for Hope Place through CDBG program $11,455 Operating Contingency $52,500 Funding for Personal Leave Payout (PLPO) at 75% of eligible costs (limited to 100 hours) $104,400 Air conditioning repairs at City Hall $10,000 Insurance cost for cell tower $1,848 Safety Grant 50% match for specific safety expenditures (body cam storage & water vests for water rescue - river, canal, pond, etc.) $5,000 PIO/Grants Coordinator moved from Finance to Community Development Human Resources Department moved from Finance to its own department Restored funding for pressure washing City Hall complex including roofs $6,000 Munis Needs Assessment for accounts payable/purchasing and payroll (split with Utility Services Fund) $5,000 Payment in lieu of taxes calculated at 9% of revenues $659,564 Transfer from Utility Services Fund increased by $66,332 to $1,459,700 Update to Comp Plan $33,700 (grant funded) Reclassification of Public Works Director to Deputy City Manager no fiscal impact Security cameras at Youth Activity Building $5,000 40

41 General Fund - Capital Outlay Requests - Funded $ 40,000 Parks and Recreation 4 Electronic scoreboards (grant funded) 35,000 Camera system at the Youth Activity Building 5,000 Capital Outlay Requests Not Funded $ 506,876 Police Department Patrol Vehicle Laptop Replacements (2) 5,000 Exterior Storage for Department Safety Equipment 4,500 Parks and Recreation Replacement A/C at the Youth Activity Building 20,000 Replace lights at James Park T-ball Field 150,000 Replace lights at Riverfront Park Tennis Courts 131,000 Replace backstop & sideline fence at James Park Ball Fields 65,000 Pave part of Parking Area in Reed Canal Park 15,000 Replace Scag 61 Mower 10,612 Replace Artificial Turf under Reed Canal Park 66,748 Replace Artificial Turf under Riverfront Park 34,816 Install Safety Glass and Doorway in Piggotte Center Office 4,200 41

42 Contingency $137,848 is budgeted in Reserve Contingency funds $ 10,948 SAFER grant costs $ 10,000 Repair A/C in City Hall $ 104,400 PLPO $ 10,000 Fire/EMS assessment fee study $ 2,500 Liability insurance deductibles $ 54,000 is budgeted in Operating Reserve Contingency funds Projected Unassigned Fund Balance Audited Unassigned Fund $ 272,069 Estimated Additions to Fund Prior Year debt proceeds 401,000 Prior Years expenditures 289,477 Estimated Unassigned Fund ,546 Budgeted Addition to Unassigned Fund ,000 Projected Unassigned Fund $ 1,362,546 Projected Unassigned Fund Balance at 9/30/17 of $962,546 or 9.39% Projected Unassigned Fund Balance at 9/30/18 of $1,362,546 or 13.30% City policy requires Unassigned Fund Balance of 10% - 20% of operating expenditures GFOA recommends Unassigned Fund Balance of 15% - 20% of operating expenditures 42

43 Redevelopment Trust Fund Budget Highlights 43

44 CRA TOTAL REVENUE BY SOURCES FY FY $ % AMENDED PRELIMINARY Increase Increase REDEVELOPMENT TRUST FUND BUDGET BUDGET (Decrease) (Decrease) Taxes $ 1,210,388 $ 1,330,337 $ 119, % Total $ 1,210,388 $ 1,330,337 $ 119, % City of South Daytona Preliminary Revenues Redevelopment Trust Fund Fiscal Year Taxes $1,330, % 44

45 CRA TOTAL EXPENDITURES BY FUNCTION FY FY $ % AMENDED PRELIMINARY Increase Increase REDEVELOPMENT TRUST FUND BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 6,200 $ 6,200 - Personal Services 125, ,721 1, % Operating Expenses 29, ,586 83, % Capital Outlay - 10,650 10,650 - Debt Service 244, ,518 (3,282) -1.34% Aid to Private Organizations 10,000 10, % Non-Operating 701, ,893 17, % Transfer to Reserves 98, ,769 4, % Total $ 1,210,388 $ 1,330,337 $ 119, % Transfer to Reserves $103,769 8% City of South Daytona Preliminary Expenditures Redevelopment Trust Fund Fiscal Year Contingency $6,200 0% Personal Services $126,721 10% Debt Service CRA expenditures graph $241,518 Transfers Out $718,893 54% 18% Operating Expenses $112,586 8% Capital Outlay $10,650 1% Aid to Private Organizations $10,000 1% 45

46 Community Redevelopment Area (CRA) valuation increased by $11,788,222 or 5.82% to $214,296,312. Fourth consecutive increase after six successive years of decreases. CRA Valuation still down $98,615,404 or 31.52% from peak year (2007 tax year). Total CRA tax increment payments down $816,641 or 24.15% from peak (FY ). Combination of lower valuations and reduced millage rates for contributing taxing authorities. Additional ad valorem revenues of $37,124 budgeted for dedicated debt service reserves. 46

47 SOUTH DAYTONA CRA HISTORICAL TAX INCREMENT REVENUE AS OF JANUARY 1, 2017 GROSS INCREMENTAL VARIANCE OVER BASE YEAR STATUTORY PROPORTION ALLOWANCE NET INCREMENTAL VARIANCE OVER BASE YEAR TOTAL TAX INCREMENT REVENUE ALL TAXING AUTHORITIES FISCAL YEAR TAX YEAR TIF YEAR CRA CERTIFIED VALUE $ 214,296,312 $ 97,694, % $ 92,810,115 $ 1,330, ,508,090 85,906, % 81,611,304 1,210, ,178,613 75,577, % 71,798,301 1,071, ,519,878 67,918, % 64,522, , ,944,748 60,343, % 57,326, , ,652,792 61,051, % 57,998, , ,795,846 68,194, % 64,784, , ,323,551 83,722, % 79,535,992 1,099, ,508, ,906, % 134,811,241 1,885, ,564, ,963, % 156,715,209 1,938, ,911, ,310, % 186,494,749 2,146, ,219, ,617, % 159,236,993 1,986, ,518,991 93,917, % 89,221,660 1,265, ,615,354 46,013, % 43,713, , ,914,507 30,313, % 28,797, , ,915,737 23,314, % 22,148, , ,649,698 16,048, % 15,245, , ,627,338 11,025, % 10,474, , ,819,371 6,217, % 5,907,021 47, ,683,863 3,082, % 2,928,289 28, BASE YEAR $ 116,601,454 N/A 95.00% N/A N/A 47

48 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 City of South Daytona Community Redevelopment Area Taxable Valuation January 1 Tax Year $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 City of South Daytona Community Redevelopment Agency Tax Increment Revenue January 1 Tax Year 48

49 CITY TAX INCREMENT REVENUE CALCULATION FY FY January 1 CRA Valuation $ 202,508,090 $ 214,296,312 January 1, 1997 CRA Base Year Valuation 116,601, ,601,454 Gross Incremental Increase 85,906,636 97,694,858 % of Collections (based on FL Statutes) 95% 95% Net Incremental Increase 81,611,304 92,810,115 Millage Rate City TIF Payment $ 603,924 $ 723,919 49

50 What's included in the budget? US1 Median Maintenance and streetlight maintenance (redevelopment plan update required) $83,916 Transfer to Reserves future debt service $37,125 Transfer to Reserves unspecified $66,644 CRA - Capital Outlay Requests - Funded $ 10,650 Community Redevelopment Halifax River and Reed Canal Road Intracoastal dredging consulting and permitting 10,650 50

51 Transportation Fund Budget Highlights 51

52 TRANSPORTATION FUND TOTAL REVENUES BY SOURCE FY FY $ % AMENDED PRELIMINARY Increase Increase TRANSPORTATION FUND BUDGET BUDGET (Decrease) (Decrease) 1-6 Cent Local Option Fuel Tax $ 193,954 $ 198,000 $ 4, % 1-5 Cent Local Option Fuel Tax 145, ,000 (83) -0.06% Intergovernmental 1,390, ,158 (420,066) % Miscellaneous 5,676 - (5,676) % Other Sources 2,274, ,259 (1,524,477) % Total $ 4,009,673 $ 2,063,417 $ (1,946,256) % 1 st Local option fuel tax operating. 2 nd Local option fuel tax - capital City of South Daytona Preliminary Revenues - Transportation Fund Fiscal Year Other Sources $750,259 36% Add graph Intergovernmental $970,158 47% 6 Cent Local Option Fuel Tax $198,000 10% 5 Cent Local Option Fuel Tax $145,000 7% Miscellaneous $- 0% 52

53 HISTORICAL LOCAL OPTION GAS TAXES Fiscal Year 6 Cent LOFT 5 Cent LOFT 2018 * $ 198,000 $ 145, * 193, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,327 Total $ 2,901,005 $ 2,141,773 * Budget $250,000 $200,000 $150,000 $100,000 $50,000 $0 City of South Daytona Gas Tax Revenues January 1 Tax Year 6 Cents 5 Cents 1st 6 cent gas tax may be used for roadway and ROW maintenance and equipment and drainage, street light installation, operation and maintenance and traffic signs. 2nd 5 cent gas tax may be used for expenditures related to capital when the construction of new roads, reconstruction or resurfacing of existing paved roads, or the paving of existing graded roads are deemed to increase capacity. 53

54 TRANSPORTATION FUND TOTAL EXPENDITURES BY FUNCTION FY FY $ % AMENDED PRELIMINARY Increase Increase TRANSPORTATION FUND BUDGET BUDGET (Decrease) (Decrease) Personal Services $ 106,899 $ 173,438 $ 66, % Operating Expenses 450, ,364 (97,735) % Capital Outlay 1,577,482 1,264,350 (313,132) % Debt Service 1,570,000 - (1,570,000) % Non-Operating 304, ,265 (31,492) % Transfer to Reserves (436) % Total $ 4,009,673 $ 2,063,417 $ (1,946,256) % City of South Daytona Preliminary Expenditures- Transportation Fund Fiscal Year Non-Operating $273,265 13% Personal Services $173,438 9% Operating Expenses $352,364 17% Transfer to Reserves $- 0% Capital Outlay $1,264,350 61% Debt Service $- 0% 54

55 What's included in the budget? Funding for two additional staff following cancellation of contractual services in FY 2017 including benefits $82,720 Transportation - Capital Outlay Funded $ 1,264,350 Ridge Blvd. Railroad Crossing Rehab. 102,600 ** US1 / Big Tree Intersection Improvements 20,000 ** US1 / Ridge Blvd. Mast Arm 17,400 ** US1 Median Landscaping 380,190 * Big Tree Road Shared Use Path 657,160 * Railroad Quiet Zone 82,000 * Concrete Mixer 5,000 ** * Denotes prior year carry-over project ** Funded by 1-5 cent gas tax (capital) Transportation - Capital Outlay - Not Funded $ 430,000 Replacement Trucks for Street Maintenance (2) 46,000 Road Resurfacing Magnolia Ave. N & Ridge Blvd. 190,000 Road Resurfacing Kenilworth Ave. 120,000 Road Resurfacing Garfield Dr. 60,000 Replacement Trailers for Mowers & Roller (2) 14,000 55

56 Capital Projects Fund Budget Highlights 56

57 CAPITAL PROJECTS FUND TOTAL REVENUES AND EXPENDITURES FY FY $ % CAPITAL PROJECTS FUND AMENDED PRELIMINARY Increase Increase Revenues BUDGET BUDGET (Decrease) (Decrease) Other Sources 100,000 - (100,000) % Total $ 100,000 $ - $ (100,000) % FY FY $ % CAPITAL PROJECTS FUND AMENDED PRELIMINARY Increase Increase Expenditures BUDGET BUDGET (Decrease) (Decrease) Non-Operating 100,000 - (100,000) % Total $ 100,000 $ - $ (100,000) % 57

58 Utility Service Fund Budget Highlights 58

59 UTILITY SERVICE FUND TOTAL REVENUES BY SOURCE FY FY $ % UTILITY SERVICE FUND AMENDED PRELIMINARY Increase Increase Revenues BUDGET BUDGET (Decrease) (Decrease) Intergovernmental $ 532,168 $ 64,910 $ (467,258) % Charges for Services 7,324,973 7,328,490 3, % Miscellaneous 14,420 - (14,420) % Other Sources 964, ,000 (39,588) -4.10% Total $ 8,836,149 $ 8,318,400 $ (517,749) -5.86% Other Sources $925,000 11% City of South Daytona Preliminary Revenues Utility Service Fund Fiscal Year Intergovernmental $64,910 1% Miscellaneous $- 0% Charges for Services $7,328,490 88% 59

60 UTILITY SERVICE FUND TOTAL EXPENDITURES BY FUNCTION FY FY $ % AMENDED PRELIMINARY Increase Increase Expenditures BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 29,735 $ 29,735 - Personal Services 530, ,960 64, % Operating Expenses 4,218,586 4,501, , % Capital Outlay 1,033, ,410 (760,271) % Debt Service 958,253 1,119, , % Non-Operating 1,766,112 1,585,358 (180,754) % Transfer to Reserves 328, ,047 (114,804) % Total $ 8,836,149 $ 8,318,400 $ (517,749) -5.86% Exp graph Transfer to Reserves $214,047 3% City of South Daytona Preliminary Expenditures Utility Services Fund Fiscal Year Debt Service $1,119,539 14% Non-Operating $1,585,358 19% Operating Expenses $4,501,351 54% Contingency $29,735 0% Personal Services $594,960 7% Capital Outlay $273,410 3% 60

61 What's included in the budget? Transfer to reserves to improve reserve balances $214,047 Funding for Water and Sewer rate study $25,000 Reserve Contingency funding for Personal Leave Payout (PLPO) at 75% of eligible costs (limited to 100 hours) $29,735 Transfer of Utility Maintenance Worker I from Operations to Utility Billing Part time staffing to focus on receivables, collections and lien processing - (Pilot program) Munis Needs Assessment for accounts payable/purchasing and payroll (split with General Fund) $5,000 and Needs Assessment for Utility Billing $10,000 Payment in lieu of taxes calculated at 9% of revenues $659,564 Bathroom renovation at PW Compound $10,000 NPDES permit renewal $7,988 61

62 Capital Outlay - Funded Utility Service Fund Water and Sewer Operations $ 243,410 Lift Station Improvements 7,000 Lift Station # 8 US1/Palmetto Replacement 86,000 Waterline Improvements 25,000 Stainless Steel Water Testing Site (Pilot) 4,000 Sewerline Improvements 25,000 Teague Street Sewer Extension 64,910 Vehicle Replacement 31,500 Flood Control $ 30,000 Drainage Improvements 25,000 Lantern Park Drainage Pond 5,000 62

63 Capital Outlay Utility Service Fund - Not Funded Water/Sewer Operations $ 525,500 Green Acres LS replacement 68,000 LS # 4 pump replacement 20,000 LS valve LS inspection camera 2,000 Portable chlorine booster station 56,000 Pipe locator 5,000 Pipe tapping kit 5,000 Upsize 2" galvanized water line on Slayton Ave. 32,000 Upsize 2" galvanized water line on Bellewood Ave. 50,000 Utility body for Supervisor truck 6,500 Install 3 stainless steel water sampling stations 12,000 Backhoe - Vehicle # replace a 1997 model 92,000 2 replacement utility body trucks for water/sewer fleet 60,000 Water/sewer dump truck - vehicle # over 20 years old 50,000 WS139 Diaphragm pump - recently seized 17,000 Sanitary sewer lining 50,000 63

64 Capital Outlay Utility Service Fund - Not Funded Flood Control $ 377,000 Park of Honor stormwater pond pump replacement 90,000 Reed Canal stormwater control facility rock wall repair 10,000 Reed Canal stormwater facility weir gate manual lift 20,000 Windle Lane pond expansion 257,000 64

65 Internal Service Fund Budget Highlights 65

66 INTERNAL SERVICE FUND TOTAL REVENUES BY SOURCE FY FY $ % INTERNAL SERVICE FUND AMENDED PRELIMINARY Increase Increase Revenues BUDGET BUDGET (Decrease) (Decrease) Other Sources $ 165,836 $ 165,296 $ (540) -0.33% Total $ 165,836 $ 165,296 $ (540) -0.33% City of South Daytona Preliminary Revenues Internal Service Fund Fiscal Year Other Sources $165, % 66

67 INTERNAL SERVICE FUND TOTAL EXPENDITURES BY FUNCTION FY FY $ % INTERNAL SERVICE FUND AMENDED PRELIMINARY Increase Increase Expenditures BUDGET BUDGET (Decrease) (Decrease) Personal Services $ 132,372 $ 137,847 $ 5, % Operating Expenses 26,949 27, % Debt Service 6,515 - (6,515) % Total $ 165,836 $ 165,296 $ (540) -0.33% City of South Daytona Preliminary Expenditures- Internal Service Fund Fiscal Year Operating Expenses $27,449 17% Personal Services $137,847 83% 67

68 Internal Service Fund Capital Outlay Not Funded $ 35,000 Solar Message Board 20,000 Vehicle Diagnostic Scanner 15,000 68

69 Questions? 69

70 Not done need rolled back millage rates FISCAL YEAR TITLE RANK VOLUSIA COUNTY TAXING AUTHORITY COMPOSITE ROLLED-BACK RATES - FY PROPOSED RESIDENTIAL TAXING AUTHORITY PARCEL COUNT VOTED DEBT FIRE CONTROL MSD TOTAL Daytona Beach DeBary New Smyrna Beach Ormond Beach Port Orange Ponce Inlet Holly Hill Edgewater DeLand Daytona Beach Shores South Daytona Orange City Lake Helen Deltona Oak Hill Pierson Volusia County